Nigeria to borrow $7.9b, says Okonjo-Iweala

The Federal Government is to add $7.9billion to its foreign debt stock between now and 2014, the Minister of Finance and Co-ordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala has said.

Okonjo-Iweala, who appeared before the House of Representatives Committee on Loans, Aids and Debts yesterday, revealed that the country would be borrowing externally at an average of $3billion yearly, describing the loans as concessional ones.

With this development, Nigeria’s external debts would stand at $14.1billion in about two years from now.

While affirming that the country would continue to borrow at a reduced level, she stressed that people should forget about borrowing from the country’s foreign reserve.

She said Nigeria’s current external debt stands at $6.2billion, while domestic borrowing, as at the end of September, stood at N6.3 trillion.

On the oil benchmark for the 2013 budget, Okonjo-Iweala cautioned against politicising the issue.

She said: “I do not want to enter into discussion on the benchmark, but I do want to urge the honorable members to please bear with us because benchmark price is really something that is based on professional and technical work.

“It is not really a political matter, it is a technical issue and it is underpinned by a module like in many other countries. And I would really want to say that in Nigeria, we should not politicise the issue of benchmark.

“We should be professional and technical about it. In countries like Chile, for instance, they even have a committee of experts that determine their benchmark.

“Maybe at one stage, Nigeria may have to move in that direction, having a committee of experts that everybody trusts. It is whatever that committee produces that nobody argues about because they know it is based on technical work.

“So, I really want to urge you, I understand what you are trying to say, I think we are putting in place a plan to manage our debt and our fiscal deficit. It is a responsible plan, one seen as strong for the economy, but I think we should avoid situations that can create more uncertainties with the issue of benchmark.

Okonjo-Iweala explained that External Reserves to nations are regarded as savings that cannot be borrowed from, stressing that every country has to save this reserve.

“The lower you run the reserve the more the Naira will depreciate, so we must maintain a level of reserve and we believe that for our economy, we should push it to $50billion and $10billion of Excess Crude Account because of the uncertainties in the world,” she added.

Besides, she said the current debt profile put at 28.87 per cent of the country’s debt-to-Gross Domestic Product (GDP) is sustainable.

When the Committee questioned the rationale behind the aggressive borrowing after the country had taken the pains to exit its earlier debt burden, the Minister noted that though it was a tortuous process for the country to exit the Paris and London clubs of creditors, the country must continue to borrow.

She said, the various loans to be taken by the federal and state governments would be target- driven, adding, that the infrastructure and other needs of the country are substantial, and would gulp between $10billion to $14billion, equivalent of more than N1.5 trillion a year for the next three years.

“If we take that from our budget, it means the totality if our capital budget. What I want us to understand is that we are not alone in this as needs are increasing daily.

“This is why nations, sometimes try to mix the budgetary resources they have with some borrowings that are productive. And that is what we need to focus on- keep the borrowing limited and whatever is borrowed must yield result,” she stated.

Finally. Nigeria gets her long lost Messiah; the “Angel of Doom”; Madam VOODOO Paper Tiger Economist with no purpose(s); the Blind leading the blinds.

Salvage

With the state of our economy, the actual total revenue of the country is a minimum of N12tr. The FG is expected to share at least N6tr from this. But the FG always budget revenue of about N3.95tr. This always leaves a deficit budget for the country, which should not be the case. The main issue is, at least N2tr of our collected revenue is not always accounted. This has been the situation with the successive Governments.

The FG should always state the correct total amount of estimated collectable revenue of the country which is always at least N12tr and the amount that shall be allocated to each tier of the Government, i.e. FG, States and Local Governments. Were all the revenue and collected revenue of the country accounted for, every year there is no need for any budget deficit, borrowing money, issuance of bonds and lack of fund to implement the budget.

Jonathan, collect and account for our actual revenue and stop borrowing money either in the form of direct loan or indirect borrowing in bond issues, which the country do not really need.

Jude Ojo

Nigerians must appreciate the effort of the Minister of Finance. The criticism against her is really unfair.

ANONYMOUUS

GENERATION YET UNBORN WILL NEVER FORGIVE THE PRESENT GEJ LEAD GOVT FOR MAKING THEM PAY FOR A DEBT THEY NEVER HAVE KNOWLEDGE OF, NOR BENEFIT DIRECTLY OR INDIRECTLY.

HOPE 2015

HOPELESS minister leading HOPELESS government. POSTERITY WILL JUDGE YOU ALL

Jude Ojo

She is not hopeless. She is giving hope to Nigeria

json

But previous loans have only been shared by a few! Can we have a list of those who will be sharing this? So we can pray for them.

What a wrong assumption by the Nigerian government on the capabilities of our esteemed Okonjo-Iweala on her economic prudence! Now we are wiser. Okonjo-Iweala is nothing but an agent of economic disaster. That is why she rolls out programmes upon programmes to please her overseers; the IMF and the World Bank to mention just few.
Remember subsidy removal saga, her new policy of not paying workers on time and recently her joint proposal with the CBN to issue out N5000 note even when they are putting the stress on cashless economy. All these are ploys to further impoverish the people.

Kari

Okonjo Iweala represent a shining light in the Nigeria system. She is not worthless. She is very much useful to the resurrection of the Nigerian economy.

Superman

What is wrong with this woman?! Why does she insist that we must borrow? OMG! with all the money Nigeria is making! All the revenue agencies have suppers thier revenue generation estimates, yet, this woman still insist we must borrow! Hear her word ” Nigeria must continue to borrow” she said it in such a way that, we have no choice but to continue to borrow. Was this the person that wanted to head the world back; her tenue would have been a disgrace for Nigeria had she gotten to that exalted position. Am sorry and shed tears for our future generation, cos’ our future is been plummeted by some paper economist. It will not be surprising if at the end of the day the national assembly approves this dastardly act by Gej and our ‘ voodoo’ economist! My major fear is that: this money will be stolen by this politician, and will never be used for what it is ment for. Almighty God, save Nigeria from the hands of it’s enemy who pretends to love her but only what to have thier own share of her grace.
It’s a pity!

Uyi Erhahon

PLEASE I DO NOT UNDERSTAND. WE ARE MAKING MORE MONEY THAN WE CAN SPEND. WE ARE NOT SPENDING AS WE OUGHT TO SPEND IN THAT THE BUDGET IS NOT FULLY INPLEMENTED NOT EVEN UP TO 50%. THERE IS EXCESS CRUDE ACCOUNT, FOREIGN RESERVE (THESE ARE FROM OIL PROCEEDS). THE FEDERAL INLAND REVENUE IS GENERATING TRILLIONS OF NAIRA, THE CUSTOMS ARE EXCEEDING THEIR REVENUE TARGET YET ACCORDING TO OUR “PRIME MINISTER” WE MUST BORROW! THE QUSTION IS BORROW TO DO WHAT?! THE WANTS TO BORROW MONEY FOR WATER! WHAT OF THE STATES AND LOCAL GOVERNMENT. WHY ARE THESE PEOPLE TAKING US FOR GRANTED? WAHT OF THE MONEY RECOVERED FROM SUBSIDY THIEVES? WHAT OF THE SUBSIDY REINVESTMENT FUND/PROGRAM? WHAT MANNER OF ECONOMY IS THIS? THE SAME PERSON THAT WANTS TO USE HUNDREDS OF MILLIONS OF NAIRA FOR FUMIGATION IN AN URBAN AREA WITH NO PROVISION FOR THE RURAL DWELLERS! WHERE ARE WE GOING AS A NATION?

Jonah Adah

Okonjo-Iweala, even if the loan is concessionary, with corruption that is so pervasive in Nigeria how can wew invest and manage such loans properly.Our childrens’ children will continue to pay debt they know nothing about.I lost confidence in this Minister when she misadvised the President to remove the petroleum subsidy at a critical time like January.She was also supportive of the N5000note for the country.She was also there during Obasanjo regime when we had to exhaust all the country’s earning to exit Paris club and IMF loans. These policies makes her suspect. Whose interest is she serving?

Success Justice

I AM ASKING THE SAME QUESTION… WHY MUST SHE INSIST THAT WE M U S T CONTINUE TO BORROW? PLEASE MR PRESIDENT RELOCATE THIS WOMAN BEFORE IT IS TOO LATE. WITH THIS HER SELF IMPOSED IDEOLOGY SHE IS LEADING THE COUNTRY NOWHERE. IMAGINE ALL THE COMMENTS MADE ABOUT HER IDEA SO FAR. SHE SHOULD BE RELIEVED OF HER POSITION NOT LATER THAN IMMEDIATELY.

DrP2

Now all Nigerians want to become finance experts, no matter how much a country makes, it may not necessarily have all the liquid instruments to finance its important needs, to biuld the third mainland bridge now for instance would have cost us maybe 20times more if was been financed now instead of years ago, because the value of money is time bound….we should be more concerned with what the money is meant for and whether it was used for that purpose transparently…national economics is not home economics

Godwin O.Ajah

Hopeless 2012′ everything looks hopeless to you because you don’t see beyond yourself and don’t believe that good things doesn’t come so easy.Our genius finance minister has a clean heart to take our great Country with GEJ to the next level .she is well focused and not hopeless like men of little faith like you. Have you ever tried managing your family budget without any headway? Think about the whole country and respect Ngozi Iwelas team.Guide your lips.
Uncle G.

Ur type is seen in de intirro vallage carry bible,deceiving market women,all in d name of giving them hope,collecting dia money &impregnating dia daughters ,u & n.g can not deceive us,dis is simply a way of borrowing money to hide for 2015 election,u guys can not kill us.

Ogbeni_MindsEye

Nigerians should reject any further attempt to throw the country into debt crisis by any leaders. Debt would dealt a psychological blows on people and dim the hope of present and future generations. A debtor is a beggar without any choice who always goes with a BOWED HEAD to face his lender. Debt in Nigeria case, is presently eating away the future with reckless abandon and leaving those coming behind to pay with their sweat and blood. Please, No TO DEBT!!!!

kenneth

The fact is this people should think and give surport to our economics planers and understand where they are taking us to before abusing the respected finance Minister. most of us talking now dont know anything money business. No body knows her capability until OBJ brought her on board and you can see her level of her expertise contribution during BABA regime. for GEJ to bring her back i know he knows her worth so be patient and pray for her sentiment apart .Also remember SOLUDO he started the good work our banks are enjoying now . so having a round pole in a round hole is better for the country

sylver charles

@Kenneth, i agree I dont know anything…but i know a Government/ economic planner who cannot implement its own budget beyond 30% dont need to borrow because they will have an additional 70% unspent money from the previous budget… and judging from the fact that the 2013 will still not be implemented beyond 40% AS USUAL…or less ,of course they are planning to share 2012 unspent money AS USUAL

No retreat No surrender,my own is Dat any day u guys woke & decide to sell dis country(Nigeria)just inform me so Dat I can choose de country u guys can sell me to.cose I know it wii surely happen with d way things re going

icijackal

These are the real statistics; foreign reserve 46 billion dollars unemployment more than 70million Nigerians, Ph.D holders now apply as truck drivers, no jobs ,no good roads,no electricity,no security,Nigeria stands 13th among failed nations,more than 5 trillion dollars stolen by corrupt politicians,public servants all of them standing trial in court and are on bails by efcc,nobody get anything unless you no a senator ,minister or highly placed politician etc.
BUT here is a minister who was sacked by OBJ for her western imperial economic policies and recalled by GEJ.please tell her why would a sane person borrow money when the person has money in the bank? The answer is very apt.This woman is an agent of western economies IMF and World bank. Recall that this same woman spear headed the payment of our debts in the OBJ regime?for which she was ransomely rewarded as MD of the world bank.Now how can we have such a huge external reserve and we are resorting to another fresh round of debt?she has to go on compulsory retirement,other wise 5this agent neo colonial powers will keep Nigeria in poverty and perpetual enslavement to her lackeys.She is an empty brain with no vision.

Henry

We may not all be good economist, but the truth is that Nigerians are fed up with our Leaders. Every measure or initiative taken is to better the lives of those in power and further impose untold hardship on the poor masses. If they told a Libyan 5yrs ago that Ghaddafi will be removed as their leader and that Libya will chart a new course, he/she will probably laugh you to scorn. My fellow Nigerians, we shall see the light ONE DAY.

Tua

Let us wake up and open our eyes very well to know that the finance minister came to trade Nigeria into the hands of the of the World bank of America. Borrow Borrow Borrow Borrow. Who is gaining the interest on all these borrowings.? Are there no other economists in this nation that can assess what the President and the Finance minister are up to? God save us from this period of American colonialism.

A compatriot

Posterity will not forgive all of you who are in the helms of affirs of this nation if you go ahead borrowing. What is your problem? I think is high time Jonathan, okonjo-eweala, and others be called to order.

Jude

Why must she be called to order? She is trying to help the country at ensuring that the economy is back on course.

Muhammad NaIya

Nigerians have come full cycle. When the mdm was seconded from the IMF, she fought and convinced Nigeria to pay a crippling debt that cost the nation the equivalnet of three years ecpenditure! Now that the clutter is cleared, she has convinced us once again to return to Shylock for more debt. Of cousre our childern and their grand children will have to pay for it.

A qoute from the cathlic writer Hilaire Belloc suffices “The effort to gather harvest from a barren land, to draw water from a dry well, to siexe tribute from those who cannot give it from true revenue but must provide it from stock, by RUINING the mass of men to the profit of the few” says it all to the Bretton Woods servants lording it over us.

Razaq Aliu Alabi

It is a pity, can this minister do this with OBJ. GEJ is mumu. What is this woman saying about exit from Paris club that continues to impoverish Nigerian. God will judge her in no distant time.

Adjarho Abu

Question: Where does the oil money go? Answer:The few privileged private pockets